Grayscale Investments, a crypto asset management company, is venturing into the crypto indices sector along with London-based indices provider FTSE Russell, a subsidiary of the London Stock Exchange.
They will join forces to offer crypto-curious investors a product called the Crypto Sector Index Series, the companies announced Tuesday morning. It will include various indices that track the prices of different types of digital assets based on their usage scenarios.
The groups include: cryptocurrencies that serve as a store of value medium of exchange (such as bitcoin, litecoin), smart contract projects (such as ether, solana, polygon), tokens that represent financial services (uniswap, compound, curve), coins that represent art, gaming and media assets (NFT projects) and projects focused on real-life applications (chainlink, filecoin and others), according to the announcement.
To balance the assets within each category, the indices will use a square root of each cryptocurrency market cap, Grayscale’s director of ETFs Inkoo Kang said: This way, the most capitalized ones, like bitcoin, won’t have an outsized effect on the market . entire group, and investors will be able to gain more diverse exposure.
DCG lawsuit
Last week, New York Attorney General Letitia James said filed a complaint against Grayscale parent company DCG, its other subsidiary Genesis, crypto exchange Gemini, former Genesis CEO Michael Moro and DCG CEO Barry Silbert.
The NYAG said Gemini and Genesis misled the public about their joint product Earn, for which Gemini loaned user fees to Genesis. Genesis then lent that money to counterparties, including failed crypto trading funds Three Arrows Capital and Alameda Research. So were both companies indicted by the SEC for the Earn product in January and it has been to fight with each other about the responsibility for the lost user funds.
